CAMBODIA: Asics compensation based on Bangladesh formula

Compensation paid by sportswear brand Asics to the families of two workers killed earlier this year at the Wing Star factory in Cambodia was worked out using the 'Bangladesh formula' - making this the first time the calculation has been used outside Bangladesh.

The 'Bangladesh Formula' is so-called because it was the model used to calculate compensation following the Spectrum collapse and Hameem fire.

And labour rights groups say that as these are the first deaths in Cambodian garment factories to be officially recorded, the use of the formula sets a clear precedent for other brands to follow in the future, should there be further fatalities.

The two workers were killed when the roof of the Wing Star footwear factory collapsed in May, while another 12 were injured. Under the agreement, injured workers have also received compensation and their medical costs have been paid. In addition, re-employment for the injured workers in Wingstar has been secured.

The Cambodian government is also under pressure from labour rights groups and Asics to fulfil all its obligations through the National Social Security Fund and pay compensation to all injured workers and the remaining family of the deceased who are yet to be fully compensated.

Asics is reported to be checking the construction of all other factory buildings it sources from in Cambodia, while the Garment Manufacturers Association in Cambodia (GMAC) and the International Labor Organization's (ILO) Better Factories programme are urging local manufacturers to conduct structural audits on their buildings.